Set Up Market

Variables to input to create a bond market for Bond Issuers

Note:

The dApp integrates DefiLlama for token pricing and CoinGecko for token logos and metadata, encompassing elements like social media links and token descriptions. While you can establish a market using tokens not listed on these sources, please be aware that in such cases the dApp might be unable to compute USD prices, discount percentages, and related metrics. Under these circumstances, our UI will display pricing as ratios between the tokens. Users will need to independently determine the value proposition.

It's also important to note that DefiLlama relies on CoinGecko for token pricing, which means tokens that have a CoinGecko price feed should work seamlessly. DefiLlama also offers pricing support for various token types, including Uniswap and Curve LP tokens.

If you're using an LP token that is not currently supported, please see the DefiLlama docs for information on how to add support.

• Payout Token: This is the token you will pay out to bonders. Select the appropriate chain icon, and either select a token from our list or paste a token address in to the box.

• Vesting: The amount of time to lapse before bonders can claim the underlying bond token.

  • Instant, 7, 14 and 28 days are Fixed Term bonds that provide purchasers and ERC1155 bond token to represent their position

  • Custom allows one to customize the vesting period, as described below.

• Custom vesting

  • Length: input the number of days to vest and this will provide purchasers an ERC1155 tokenized bond (a.k.a. Fixed Term bond)

  • Date: specify the specific date to vest and this will provide purchasers an ERC20 tokenized bond (a.k.a Fixed Expiry bond)

• Quote Token: The token you will receive. Select the appropriate chain icon, then select a token from our list or paste a token address into the box. Limit orders are only supported for select quote assets.

• Capacity: Defines the total amount of tokens you want to emit or acquire. The PAYOUT and QUOTE toggle allows you to define the capacity from the emission vs. acquisition perspective respectively.

  Payout: defines the emission capacity from the Payout Token perspective

  Quote: defines the emission capacity from the Quote Token perspective (calculated based on the exchange rate of Payout Token to Quote Token)

• Dynamic vs Static: This refers to the auction type that you would like the bond market to have

  Dynamic: Tried and battle-tested Sequential Dutch Auction

  Static: Fixed-Price auction whereby you define a fixed price of the Payout Token in exchange for the Quote Token.

• Dynamic set-up

  Initial Price: Initial exchange rate to initialize the bond market

  Min Price: Acts as an absolute floor which the bond price cannot fall below. Recommended at least 30% discount to initial price to avoid the auction from getting stuck.

• Oracle: Oracle based markets are currently available on Arbitrum and Optimism. As with our non-Oracle bonds, they can be either Dynamic or Static. All Oracle bonds require an address to an Oracle contract which implements our IBondOracle interface. Our issuer-contracts repository contains more information, including sample contracts.

• Oracle-Dynamic

  Base Discount: The base discount percentage from which the market starts and to which it resets after purchases reach target capacity.

  Target Interval Discount: The target discount percentage to be achieved over a deposit interval, in addition to the base discount.

  Max Discount From Start: This acts as an absolute hard floor which the bond price cannot fall below. It is based on the Oracle price at the time of market creation. Recommendation is at least 30% discount to initial price to avoid the auction from getting stuck.

• Oracle-Static

  Fixed Discount: The discount percentage from Oracle price the market will offer.

  Max Discount From Start: This acts as an absolute hard floor which the bond price cannot fall below. It is based on the Oracle price at the time of market creation. Recommendation is at least 30% discount to initial price to avoid the auction from getting stuck.

• Market Start: To define start date and time of the bond market. This is based on your local time

Select 'IMMEDIATE' if you want the bond market to start immediately after deployment. Note that if you select a time for market start, rather than immediate, you must execute the market creation transaction before this time. Otherwise, market creation will fail.

• Market End: To define the end date and time of the bond market

If the vesting period is set as a specific date, the Market End date needs to be before the Vesting date.